Smiths Medical manufactures and supplies specialized medical equipment and consumables. Credit: Raysonho @ Open Grid Scheduler / Scalable Grid Engine.

British engineering firm Smiths Group has agreed to sell Smiths Medical to Trulli Bidco, a wholly owned subsidiary of funds advised by TA Associates, in a $ 2.3 billion deal.

The transaction also includes an additional payment of $ 200 million which will depend on the future. Smiths Medical performance.

Smiths Medical manufactures and supplies specialized medical equipment, as well as single-use medical devices and consumables, which are used in hospitals, ambulances and specialized care environments.

They are used during critical and intensive care, surgery and postoperative care, and to support chronic disease.

The company’s product portfolio includes infusion systems that deliver fluids and medications to manage pain and treat acute and chronic conditions.

It also includes vascular access products that protect healthcare workers and patients from needle stick injuries and nosocomial infections.

Smiths Medical also offers life-saving care products that include devices to manage patients’ airways and maintain body temperature before, during and after surgery.

Smiths Group CEO Paul Keel said, “This transaction positions Smiths as a more focused industrial technology company with exciting growth opportunities, a common operating model and a shared goal.

“In keeping with our separation commitment, the sale generates immediate value for Smiths shareholders and positions us well for additional value creation through our retained 30% stake in Smiths Medical, as well as potential additional consideration of 0 , $ 2 billion, depending on future performance. ”

The transaction is subject to the approval of Smiths shareholders and the receipt of other customary regulatory approvals.

Completion of the transaction and receipt of initial cash proceeds is expected by the end of this calendar year.

Upon completion of the proposed acquisition, Smiths expects to receive net cash proceeds of up to $ 1.8 billion.

Under the deal, the company will also receive a 30% stake in Trulli Topco worth $ 200 million.

Smiths said Topco will be the new holding company for its medical business.

In addition, he plans to use the proceeds to invest in growth and facilitate a significant return of capital to shareholders.

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